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Vol. LXXXII, No. 50 Ann Arbor, Michigan-Saturday, November 6, 1971 Ten Cents

Eight Pages

Legislature split on new drug bill

Higher ed bill may

By ALAN LENHOFF
For well over a year, the State House
of Representatives has been stymied by
the Senate in its attempts to liberalize
Michigan's harsh drug laws.
In fact, observers have wondered
whether drug law reform was destined
for the same fate as abortion reform-
a slow death in a hostile committee.
But Thursday, the Senate passed a
drug bill - a measure that includes
harsh yet reduced penalties for mari-
juana possession - and it appears the
inter-house battle over drug law reform
is about to reach .a head.
The Senate bill reduces the penalty
for possession of marijuana to a maxi-
mum of two years in prison and a $2,000
fine, and retains the offense's designa-
tion as a felony.
For a second offense of possession, the
Senate bill provides for penalties of up
to four years in jail and a $4,000 fine.
Under present laws, sentences of up
to 10 years in jail and a $5,000 fine

may be given to first-time marijuana
possessors. A second-offense conviction
can bring a maximum 20 year sentence.
The measure, however, is far harsher
than a version passed by the House in
June which would make first-offense
marijuana possession a misdemeanor
punishable by a maximum of 90 days
in jail or a $500 fine.
The two versions of the bill, dubbed
the "Controlled Substances Act of 1971,"
will be worked into a compromise mea-
sure by a conference committee.
Caught in the middle is Gov. William
Milliken, who supported the House bill
and is reported to be unhappy with the
Senate version. He will probably at-
tempt to use his influence to facilitate
a compromise favorable to his position.
The conferees, however, must resolve
a major philosophical split between the
two bills before they report out the re-
worked measure.
In the Senate, proponents of the re-
cently-passed measure contend that re-

form of drug laws is necessary from a
law and order standpoint because the
harsh present penalties have discour-
aged courts from convicting offenders.
The House measure, however, is
seemingly an effort to liberalize the
state's stance on drugs by showing
more tolerance for the drug user - and
particularly, the first offender.
The bill has been hailed by supporters
for drastically reducing the penalties
for first time offenders and distinguish-
ing between casual users and: peddlers.
It would give a judge the option of
imposing a special probation period of
up to one year which would erase a con-
viction from a first offender's record.
The House bill would also reduce the
penalties for possession of halucino-
genic drugs such as LSD, mescaline and
peyote to six months in jail or a $5,000
fine.
Another controversial section of the
House-approved bill would allow judges
See STATE, Page 8

in

direct

$500,000
govt. aid

By HESTER PULLING
The University appears like-
ly to receive almost half a mil-
lion dollars in direct institu-
tional aid from the federal
government for fiscal year
1973, under a provision in the
higher education bill passed
early yesterday morning by
the House of Representatives.
The federal aid provision would
for the first time provide general'
purpose federal grants to every
college and university in the na-
tion and will be extended over a
five-year period.

Gov. Milliken


,Student

Credit

Union

closes

down

Financial difficulties cited;
savings and loans still intact


By ROSE SUE BERSTEIN
The Student Credit Union (SCU), the nation's only credit
union established exclusively for and by students, has folded
because of financial difficulties.
SCU, which once had a membership of almost 3,000 while
working out of offices in the Michigan Union, has technic-
%ally gone into "receivership."
Officials of SCU decided "by mutual agreement" with the
MVifhifvr. C drlit TTnionnT, TLi to allow the state Financial

c lengan Lruul g11i U:U
Institutions Bureau to place S
k-Court to
he r on blast
WASHINGTON (1P)= The Su-
preme Court said yesterday it will
hold a one hour hearing this
morning to determine whether it
will halt this afternoon's sched-
uled underground nuclear blast on
Amchitka Island.
A spokesman for the court said
the hearing will begin at 9:30 a.m.
EST and will be confined to whe-
ther the court will order a halt to
the test pending a hearing on the
test's merits.
The blast is scheduled to go off
at 5 p.m. EST with a force 250
times greater than the atomic
bomb dropped on Hiroshima 26
The University's department
of geology and minerology in-
4 vites all interested and/or con-
cerned persons to view the seis-
mographic reaction to the
scheduled Amchitka test, at
4:30 p.m. in room 4512 of the
Clarence Cook Little Bldg., 425
E. University.
'ears ago. It would be held almost3
6,000 feet underground on the re-I
mote island off the coast of Alas-
ka-
In Detroit a march is scheduled
to pass down Woodward Avenue4
to the Kennedy Square Fountain
*r a noon rally. Later, demonstra-
tors will attempt to close - down
the Ambassador Bridge to Canada.

SCU in receivership as of last
Monday morning, according
to a spokesman for the Credit
Union League.
The 2,423 members who have
savings shares on deposit will be
able to redeem those shares-re-
demption began yesterday - and'
the 502 members who have loans
outstanding must continue to fol-
low their repayment schedule, the!
spokesman said.
IThe League, which coordinates
some 1.100 credit unions through-
out the state, has been named re-'
ceiver for SCU. Thus, any trans-j
actions concerning SCU must go.
through the League.
It was decided to petition for;
receivershiprather than follow!
the course of voluntary liquida-
sionethe spokesman explained, be-
cause the latter course w o u I d
"freeze" all savings shares. In ad-
dition, to go into voluntary liqui-
dation would require a vote of all
SCU members whereas only the
officers' consent was needed for
the receivership petitioning.
SCU opened in Aug., 1969. At
its office in the Union, it offered'
students standard savings share
accounts, personal loans up to
$500, free check cashing for mem-
bers, and special loans up to $100,
to minors with no co-signature.
By Feb., 1970, c 1 o s e to 1,700
members had deposited over $180,-
000 in SCU, and there were loans
outstanding of over $152,000. As
of Nov. 1, the receivership date,
SCU had 2,423 members with de-
posits of $131,400; however, 502
members had loans totaling $263,-!
500.
The League spokesman attrib-
uted SCU's problems to a lack of'
increase in stUdent participation.
"I don't know that the interest
declined so much as it levelled
off," he said, conjecturing that
SCU had "reached a maximum
growth."
"Students have greater mobil-
See CREDIT, Page 8

At this time it seems almost
certain that some form of direct
ederal assistance to institutions of
higher education will be enacted.
Although President Nixon original-
y opposed direct federal aid, he
ater amended his position.
Spokesmen for the House educa-
ion committee told The Daily yes-
terday that some type of direct
federal assistance should be forth-
coming by next July.
However, University President
Robben Fleming, who has been
following the House bill since
its inception, yesterday expressed
doubt that direct federal funds will
be available to the University in
the immediate future.
Although colleges have received
federal funds over the years for
building construction, research,
student aid and other specific pur-
oses,gthere have never before
been grants that could be spent
solely at a school's discretion.
In addition to the House bill,!
the Senate passed a higher edu-
cation measure last August with a
similar federal aid provision. The
two bills now go to a joint House-
S e n a t e conference committee
where differences between the
measures will be ironed out. ,
Leading the fight for general:
purpose grants, Rep. Edith Green
(D-Ore.) argued that direct aid
was the only way to rescue col-
leges from serious financial diffi-
culties.
The University is currently suf-
fering one of its worst financial
situations in recent years, and has
been hit by sharp cutbacks in state
funds.
"We're hard up for money right
now," said Administrative Dean
Robert Williams, adding that the
earmarking in the University of
any new funds will be determined
by an administrative executive
committee with the advice and
consultation of the faculty.
Under the House measure, fed-
eral grants to colleges could total
more than one billion dollars a
year for the next five years. How-
ever, because Congress usually ap-
propriates much less than a bill
provides for, the University is
more likely to receive a smaller
sum.
If the House measure -was fully
funded, the University would re-
ceive $4.6 million out of the $1 bil-
lion plus total.
However, according to the New
York Times, House members and
government officials feel $100 mil-
lion is a more realistic total ap-
propriation figure.
If such an amount was appro-
priated by Congress, the Univer-
sity would receive $484,000.
Under the House's measure, two-
thirds of a school's grant would be
based on the following formula:
$100 per student for each fresh-
man and sophomore; $150 for each
See 'U', Page 8

-Associated Press
REP. JOHN ASHBROOK (R-Ohio), left, and Rep. William Broom-
field (R-Mich.) confer outside the House chamber yesterday. Ash-
brook introduced the amendment, adopted by the House Thursday
night, that calls for a ban on federal spending for busing to achieve
school integration. Broomfield supported the amendment.
Implic'ation of House
busing action studied
WASHINGTON ( -- Officials charged with carrying out
school desegregation policy studied a package of House-passed
anti-busing amendments yesterday to see what effect they
might have.
The amendments to the massive higher-education bill
adopted yesterday morning, would prevent the government
from spending federal funds or requiring a school district to
spend its own funds for busing. They also would delay court-
ordered busing plans until the appeals process is completed.
There was no mistaking the meaning of the amendments
-the House wants forced busing to stop. But the effect on

-. .-Daily-Sara Krulwich
Ticket table
Students buy and sell football tickets at an exchange booth sponsored by the University Activities
Center. UAC workers say that tickets for today's game against Iowa were going for under $3, while
precious Ohio State tickets are now at $15 and rising.
PLAN JEOPARDIZED?
OSS committee recommends
relocation of housing project

Boycotters in,
Pontiac to be
prosiecuted
PONTIAC (A) - In a move
against anti-busing advocates yes-
terday, Pontiac school officials
announced that parents who are
keeping their children out of
school to protest busing for inte-
gration in the city will be prose-
cuted.
Arnold Embree, director of pu-
pil personnel services for the Pon-
tiac Board of Education, said war-
rants will be sought against the
parents of about 450 children who
are not currently enrolled in ac-
credited schools. The latest school
census showed Pontiac with 24,243
students.
Embree said that at one point,
over 3,000 children were believed
to be held out of school because of
busing protests. But, he said, the
figure is now less than 500.
Many of those children, it is be-
lieved, are attending unaccredited
"freedom schools" set up by bus-
ing foes.
Under state law, school offi-
cials must seek warrants for non-
compliance with the mandatory
school attendance law directly
from district judges.

existing laws and policies was
unclear.
At the Department of Health,
Education and Welfare, which has
the major responsibility for carry-
ing out school desegregation policy,
officials said they need more time
to study the impact of the amend-
ments.
Their major concern is a double-
barreled amendment put together
by Reps. John M. Ashbrook (R-
Ohio) and Edith Green (D-Ore.)
that was adopted 233-124.
Ashbrook proposed a blanket pro-
hibition on the use of any federal
funds for busing. Green added the
provision that HEW couldn't make
the states spend their own money
for busing either.
Some congressmen said it ap-
peared that HEW would be pretty
well stripped of its power to en-
force desegregation policy. if the
Ashbrook-Green amendment ever
became law.
On Capitol Hill, however, there
were few who felt the amendments
would go on the statute books. The
House has taken tough stands on
busing before, only to have its
efforts nullified by the Senate.
"I think something can be work-
ed out in conference with the Sen-
ate," said Rep. Carl Perkins (D-
Ky.), chairman of the Education
and Labor Committee, who will
head the House conferees.
Perkins doesn't plan to go to
conference with the Senate until
the week after next and with Con-
gress hoping to adjourn in mid-
December a settlement this year
seems unlikely.

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By PAUL TRAVIS
The Office of Student Services
Housing Policy Committee voted
Thursday afternoon to recommend
a change in the site of a pro-
posed 206-unit student housing
project - a move which some
observers say may jeopardize the
future of the project.
It is estimated that the site
change will increase construction
costs by about $250.000. The added
costs stem from site improvement
and utility connections which
would not have been needed at the
original site.
The vote changed the site from
a proposed "redensification" of
the Northwood Family Housing
area on North Campus to a pre-
sently vacant North Campus area
across from the Northwood V
apartments.
Some sources in the adminis-
tration have expressed concern
that the large increase in the cost
of construction will force the Ex-
ecutive Officers and Regents -
who must finally approve the pro-
ject - to balk due to budgetary
considerations.
The original site of the project
had generated many complaints
from students living in the area.
Residents of Northwood Family
Housing, University Terrace. and
T2 vc~xr a r ntJ.. - Tnllc nhip+PA

elsewhere."
According to Robert Knauss,
vice president for student serv-
ices, the site change "may force
rents that are already too high
to be raised even higher. That
would reduce the competitiveness
of the housing"
A possible obstacle to the site
change lies in the fact that the
new site has been designated by
the University Planning Depart-
ment for future research pur-
poses. To use the land for hous-

The project, sponsored by the
University, calls for 206 units of
housing to be built on the North
Campus area. The housing-cost-
ing close to $6 million-is expected
to accommodate over 800 stu-
dents.
The vote of the committee was;
three in favor, one opposed and
one abstention. The five members
of the nine-man committee who
attended the meeting were all
students.

see no purpose to redensifying ing purposes would require sepa-
Northwoods while there are ac- rate approval by the University's
ceptable choices of available land Executive Officers.

CONTROVERSY CONTINUES

Graduate
By GLORIA SMITH
After months of debate among different groups
on how to best represent the needs of graduate
students, it seems likely that a new body-
Graduate Federation (GF) - will assume this
task.
The debate, however, is not yet over.
Reacting to criticisms recently made by a
handful of graduate student activists, GF or-

Federation:
tion of the federation, John Koza, Grad, claims
that Student Government Council procedures
for forming a new government are not being
followed by GF organizers.
Koza, taking action on his complaints, has
filed a suit with the Central Student Judiciary
(CSJ) asking that Rackham Student Govern-
ment-one of the GF organizers-be enjoined
from ratification.

New voice?


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